Ratios valuation of Cebu Air Inc.

( CEB | PHL)
The EV/EBITDA NTM ratio (also called EBITDA multiple or enterprise multiple) is a well-known company valuation metric
that compares a company's overall value to its operational earning power. The EV/EBITDA NTM ratio is very commonly
used for business valuation as it indicates whether a company may be undervalued or overvalued compared to industry
peers. The EV/EBITDA NTM ratio is a more precise measure than the P/E ratio because it takes into account both the
company pure operational earning measure (EBITDA vs. Net Profit) and a company overall value indicator that also includes
financial debt, cash position and minority interests which are key indicators when valuing a firm market value. (Enterprise
Value vs. Market Capitalization)
The EV/EBITDA NTM ratio of Cebu Air Inc. is significantly lower than the median of its peer group: around 6.00. According
to these financial ratios Cebu Air Inc.'s valuation is way below the market valuation of its peer group.
The EV/EBITDA NTM ratio of Cebu Air Inc. is significantly lower than the average of its sector (Airlines): 5.44. According to
these financial ratios Cebu Air Inc.'s valuation is way below the market valuation of its sector.
The EV/EBITDA NTM ratio of Cebu Air Inc. is significantly lower than its historical 5-year average: 5.6. The (current)
company valuation of Cebu Air Inc. is therefore way below its valuation average over the last five years.

Financial ratios are generally ratios of selected values on an enterprise's financial statements. There are many standard
financial ratios used in order to evaluate a business or a company. Financial ratios can also be used by managers within a
firm, by current and potential shareholders (owners) of a firm, and by a firm's creditors. Security analysts use financial ratios
to compare the strengths and weaknesses of various companies. In Infront Analytics, financial ratios are categorized
according to the financial aspect of the business that the ratio measures:
- Growth ratios measure the company's rate of growth and assess the potential for future growth. E.g. Net Sales Growth,
EBITDA Growth, EBIT Growth.
- Profitability ratios measure the returns generated on sales and investment, hence the ability of the company to generate
profits.
Profitability ratios include margin ratios (such as profit margin or operating margin) and return ratios (such as return on
equity or return on assets).
- Capital structure and liquidity ratios measure the extent to which the company is relying upon debt to fund its operations,
and its ability to pay back the debt.
Capital structure ratios include debt to equity and debt to asset ratios, and liquidity ratios include coverage ratios and
solvency ratios.
- Asset utilization ratios, also called activity or efficiency ratios, measure how efficiently the company's day to day operations
are managing inventory, selling and producing products, or using assets to generate revenue.
Financial ratios allow for comparisons between companies, between industries and also between a single company and its
industry average or peer group average.